Real Estate Developer Sentenced to 30 Months in Federal Prison for Role in Bribery Scheme

May 3, 2010 - Nora R. Dannehy, United States Attorney for the District of Connecticut, announced that RICHARD R. GIROUARD, 56, of Stuart, Florida, formerly of Norwalk, Connecticut, was sentenced today by Senior United States District Judge Alfred V. Covello in Hartford to 30 months of imprisonment, followed by three years of supervised release, for his role in a bribery scheme. Judge Covello also ordered GIROUARD to pay a fine in the amount of $15,000. On November 24, 2009, GIROUARD pleaded guilty to one count of conspiracy to commit financial institution bribery.

According to court documents and statements made in court, GIROUARD, a real estate developer and owner and operator of Girouard Associates, Inc., engaged in a bribery scheme with attorney Paul A. Aparo and Kevin J. O’Keefe, an officer at Fleet Bank (now Bank of America), in connection with Fleet Bank’s business.

In 2002, Fleet Bank owned almost half (49.12%) of an entity known as “LINC Receivables.” LINC Receivables was the owner of certain leases and installment sales contracts that produced a stream of revenue, and O’Keefe was the officer at Fleet Bank responsible for overseeing Fleet Bank’s interest in LINC Receivables. That same year, Aparo, who was GIROUARD’s lawyer, and O’Keefe approached GIROUARD about his interest in purchasing Fleet Bank’s interest in LINC Receivables. O’Keefe informed GIROUARD that if GIROUARD could raise the capital, GIROUARD’s company would be selected by Fleet Bank to purchase its share of LINC Receivables. The Girouard company set up to purchase LINC Receivables was called “RRG Investments, LLC.”

GIROUARD has admitted that he agreed to pay an entity controlled by Aparo, called “Lexington Associates,” 15 percent of the profits from RRG Investments’ purchase of Fleet Bank’s share of LINC Receivables. GIROUARD made payments of between $400,000 and $1 million to Lexington Associates, knowing that Aparo, in turn, would pay O’Keefe to influence and reward him for his assistance with the LINC Receivables transaction.

As part of the sentence imposed today, GIROUARD has agreed to forfeit to the Government property with a value of at least $2 million. He also has made restitution of $600,000 to a victim investor of RRG Investments, LLC.

O’Keefe and Aparo also have pleaded guilty to conspiring to commit financial institution bribery. Each awaits sentencing.

This matter has been investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Eric J. Glover and David Novick.